research asset assessment study for commonwealth of virginia · 09.10.2017 · share of total...

Innovating Tomorrow’s Economic Landscape

Research‐Asset Assessment Study for Commonwealth of Virginia

October 9, 2017


Today’s Agenda

• Context of Advancing Innovation with References to Best Practices

• Discuss the initial “headroom” analysis ‐‐ what is Virginia’s core R&D competencies and its line‐of‐sight to market opportunities.

• Discuss the initial “gap” analyses … focusing on the innovation ecosystem gaps with specific insights regarding funding streams, commercialization and industry‐university/federal lab collaborations.

• Next steps in the project and how it deepens our understandings and will drive recommendations

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Project Purpose and Phases for Advancing Research‐Asset Assessment from SCHEV RFP

• SCHEV seeks expert assistance in conducting a study that will be an assessment of the Commonwealth’s research assets, including those located at or within its public and private universities, federal research facilities and private sector companies. The goals of this study will be to:i. Evaluate Virginia’s current

capabilities in the commercialization of its academic R&D

ii. Assess Virginia’s future opportunities and capacities for commercializing the results of its academic R&D

iii. Develop recommendations regarding where and how the Commonwealth should direct its resources to accomplish VRIC’s mandate

• Four phase effort set out by the RFP:

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Phase I: Establishing the Baseline

Phase II: Charting the Course Forward

Phase III: Developing Recommendations

Phase IV: Presenting Findings & Recommendations


Connecting Core R&D Competencies to Identifying High Growth Opportunities through Line‐of‐Sight Assessment

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Industry patenting analysis

SBIR and VC awardsDetailed advanced industry

performance

Publications analysis

Research Centers

Research grant awards

Technology transfer trends

Areas where Virginia has real, differentiating potential

Core Industry R&D Competency Identification

& Innovation Drivers

Core Industry R&D Competency Identification

& Innovation Drivers

Core Academic & Federal Lab Research Competency

Identification

Core Academic & Federal Lab Research Competency

Identification

Assessment of Line‐of‐Sight to

Significant Markets

Assessment of Line‐of‐Sight to

Significant Markets

Recommended Target Growth Opportunity Platforms

Recommended Target Growth Opportunity Platforms

Innovating Tomorrow’s Economic LandscapeInnovating Tomorrow’s Economic Landscape

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But It Takes a Well‐Functioning Innovation Ecosystem to Succeed

SIMPLIFIED CHAIN


Wide range of best practice approaches by states to strengthen innovation ecosystem capacities and connections

Georgia Research Alliance

Entrepreneurial “Eminent Scholars” GRA Ventures Privately Managed GRA

Venture Capital Fund

NC Biotech CenterRange of Research Grants

Technology Enhancement Grant Centers for Innovation

Small Business Loans

Ohio Third Frontier

Wright Centers of Innovation (past)

Technology Validation and Start‐up Fund

Entrepreneurial Services ProviderPre‐Seed/Seed FundsCommercial Acceleration Loan Funds

Oregon Inc. Targeted “Industry‐Led” state‐wide 501(C)3 Signature Research Centers with tailored approaches from R&D capacity to commercialization to entrepreneurial

development

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Venture formation

Pre-seedEarly/seed-stage venturecapital

2nd Round venture capital

MezzanineVenture Capitalpre-IPO or saleR&D –

Innovation

Proof of principle

Engineering prototype –service models Prototypes, pilot

projects, test beds human trials

Product/Service introduction

GrantsSpecializedprograms, friends/family

SpecializedInvestment fundsand/or angels

Funds with sideagreements to source locally

“National” funds based locally and their syndicate partners elsewhere

SalesCum

ulat

ive c

ash

flow

Deal Stage

Sources of Capital

Typical Firm Functions

Break Even

2 yrs. for IT-comm. services… 5–7 yrs. for devices & equipment…10+yrs. for biopharma

Critical to Address Full Life Cycle of Company Formation to Growth


Presence of entrepreneursand skilled talent

Public and privatesector risk capital forpre‐seed, seed and venture funding rounds

Long‐term, sustained commitment to development of the cluster by all parties

ExistingIndustry

BusinessExpansion

Business Attraction

Successfuland Expanding

Business Clusters

AppliedR&D

Piloting &Demonstration

BasicScience

TechnologyTransfer

New EnterpriseDevelopment

Best Practice Example: North Carolina’s Efforts to Advance its Innovation Ecosystem

Integration into existing, expanding andnew

cluster businesses

NCBiotech

External Funding Assistance

Biotechnology Center Business LoansCompany Inception Loan

Small Business Research LoanStrategic Growth Loan

Research GrantsTechnology

Enhancement Grant

Research GrantsBiotechnology Research GrantCollaborative Funding Grant

Institutional Development Grant

Centers of Innovation Grants

Business Services

Support for Business Formation, Attraction

and Growth

Generation of positivegovernment, regulatory and business climate to meet competitive cluster needs

Education andworkforcedevelopment tosupport clusterpersonnel needs

Job Services

Biotechnology Education and Advocacy


Headroom Analysis on Identifying Growth Opportunities


Setting the Virginia Context: A Substantial Base of Innovation Activities

Statewide Innovation Activity:

• $11.1 billion in total research expenditures in 2015 – 2.4% of U.S.

• 3,354 patents awarded to Virginia inventors in 2016 – 2.0% of U.S.

• $2.1 billion in venture capital investments in 2016 – 3.8% of U.S.

• 447,713 jobs in advanced industries –3.4% of U.S. compared to Virginia’s 2.6% share of total private sector jobs in U.S.

• $494 billion of economic output – 2.7% of U.S.

More Detailed Look at 2015 Research Expenditures:

• $4.5 billion in industry research – 1.3% of U.S.

• $3.4 billion in federal intramural labs – 11.4% of U.S.

• $1.8 billion in federally funded R&D centers (FFRDCs) –9.9% of U.S.

• $1.4 billion in university research – 2.1% of U.S.

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Success in Today’s Global Knowledge Economy Requires Finding Your “Niche”

• The industry, university and federal labs base should be viewed as a portfolio of core competencies that can be linked to market opportunities.

• Recognize that not all states are built alike … It is the differences that can best define how a region can succeed in technology‐based economic development.

Similar to private industry, states and regions need to bring a strategic focus in understanding the opportunities that their university and industry base can sustain and leverage

Similar to private industry, states and regions need to bring a strategic focus in understanding the opportunities that their university and industry base can sustain and leverage

Hamel and Prahalad in their landmark study, Competing for the Future, explain how a focus on core competencies can improve competitiveness:“To successfully compete for the future a company must be capable of enlarging its opportunity horizon. This requires top management to conceive of the company as a portfolio of core competencies rather than a portfolio of individual business units … Core competencies are the gateways to future opportunities.”

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Broad Approach to Assessing R&D Competencies

Proven methodology used in projects across the nationProven methodology used in projects across the nation

• Research core competencies refer to those research areas where there is a critical mass of activity and demonstrated excellence as assessed by quantitative and qualitative analysis.

• No one single source of information that serves to identify core research competencies and focus areas. Rather, a variety of integrated and complementary analyses is required.

Phase 1: Quantitative AnalysisIdentifies research strengths through advanced analytics of:• Publication cluster

analysis• Patent innovation

networksValidate using:• Major grants• Reputational rankings• Technology focus of

industry development

Phase 2: Qualitative AnalysisUse of field interviews to offer on‐the‐ground perspectives to validate and deepen understanding of specific R&D strengths and planned enhancements.

Perspectives from:• University and federal lab

leadership• Industry executives• Economic development

stakeholders

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Graphic Illustration of Line‐of‐Sight Analysis

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Research Publications Cluster Analysis

• Analyzed text content of VA university and research institution publications 2014 to mid‐2017

• Revealed 35 cluster groupings with 23 in the life sciences and 12 in the non‐life sciences

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More Details on Publication Clusters

• 11 Large Cluster Groupings (>1,000 records) Ecological Sciences and Technology (4,577) Oncology (2,639) Material Sciences (2,453) Particle & High Energy Physics (1,456) Neurological Sciences (1,320) Obesity & Diabetes Research and Treatment (1,276)

Atmospheric Sciences (1,251) Hepatology, Liver Disease and Transplantation (1,147)

Astronomy (1,122) Orthopedic & Musculoskeletal Disorders (1,103)

• 14 Mid‐Size Cluster Groupings (200‐999 records) Transportation Safety and Intelligent Transportation Systems (834)

Substance Abuse and Mental Illness (648) Wireless Communications and Data Networks (617) Cybersecurity (552) Health Care Research (552) Genomic Analysis (470) Respiratory Disorders and Conditions (378) Brain Injuries (346) Endocrinology (320) Veteran Treatment and Military Preparedness (308) Roadway Construction (287) Molecular and Cellular Biology (267) Geological Sciences (238) Systems Engineering, Modeling and Testing (224)

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Use of Patent Innovation Networks to Identify Areas of Innovation Activity Largely Found in Industry

• Identifying Innovation Networks: Using connections in forward citations to examine more detailed relationships between patents in VA through connections in forward citations

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Patent Innovation Network Analysis• Analyzed co‐occurring technology area classifications in patents with VA inventors 2014‐2017

• Resulting network of technology areas shows the “landscape” of VA innovation activity in patenting, revealing 9 large clusters of highly connected technology applications strengths

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Networking, IT, & Data Analytics

Wireless Networks & Transmission

Telecoms/Wireless Physical Network Infrastructure

Power & Automatic Control Systems

Electronics and Optics

Materials Engineering (armor, ceramics, shaped materials, coatings)

Fuels, Energy, Water/Wastewater Treatment

Biopharma, Biochemistry, & Materials Analysis (includes tobacco classes)

Multidisciplinary Sensing & Imaging Applications


Broader Measures of Innovation Activity Used to Evaluate Line of Sight

• Research Innovation Metrics Presence in Publication Cluster Analysis Strength of leading publications fields (>100 overall publications in field) measures volume + specialization University R&D Spending measures volume + intensity Major grant awards >$1 million Presence of Leading Research Centers with shared use infrastructure

• Industry Innovation Metrics Strength of Leading Patent Classes (>100 overall publications in field), measures volume + specialization Presence of Venture Capital Funding, measures total investment + intensity Level of Phase 2 SBIR awards Size of Employment Base (detailed 6‐digit NAICS industries) Specialization of Employment Base (detailed 6‐digit NAICS industries)

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• Use additional metrics of innovation activity aligned with innovation platforms identified by line‐of‐sigh analysis to provide further insight into scope of innovation occurring across the translational spectrum


Results of Line of Sight Scoring Assessment• 14 initial innovation platforms identified and assessed using line‐of‐sight analysis • Few areas with leading strengths in both industry and research innovation factors

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Overall Ranking of Platforms Based on Line‐of‐Sight Analysis

Broad Applications Vertical

Innovation‐Led Platform AreaLine of Sight

Assessment of VA Research Innovation

Line of Sight Assessment of VA

Translational/Industry Innovation

Biomedical Sciences

Animal Science & Veterinary Medicine Niche Niche

Biopharmaceuticals, Biochemistry, & Biological Analysis Strong Niche

Diagnostic Sensing & Imaging Medical Devices Moderate Moderate

Regenerative Medicine Devices Moderate Niche

Computing & Analytics

IT, Networking, & Data Management Niche Strong

Cyber & Cyber‐Physical Security Strong Strong

Applied Data Analytics, Image Analysis & Decision Support Tools Moderate Strong

Advanced Materials

Engineered Materials for Aerospace, Naval, & Defense Applications Moderate Moderate

Electronics & Optics Materials/Components Strong Moderate

Systems Engineering

Applied Sensing & Geospatial Systems Strong Moderate

Transportation Systems & Technologies Strong Niche

Wireless Communications Technologies & Equipment Moderate Strong

Environment & Energy

Environmental Sciences and Technology Strong Niche

Energy, Power Systems, & Fuels Moderate Moderate

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Grouping of VA Innovation Platforms Based on Line‐of‐ Sight Analysis

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Signature Innovation Platforms (strengths in both industry and research institution measures) Cyber & Cyber‐Physical Security

Priority Innovation Platforms (strong industry or research institution activities and moderate in other sector) Applied Data Analytics, Image Analysis, & Decision Support Tools Electronics & Optics Materials/Components Applied Sensing & Geospatial Systems Wireless Communications Technologies & Equipment

High Potential Innovation Platforms for Consideration (strengths in both industry and research institution measures) Biopharmaceuticals, Biochemistry, & Biological Analysis IT, Networking, & Data Management Transportation Systems & Technologies Environmental Sciences and Technology

Middling and Niche Innovation Platforms Diagnostic Sensing & Imaging Medical Devices Regenerative Medicine Devices Engineered Materials for Aerospace, Naval, & Defense Applications Energy, Power Systems, & Fuels Animal Science & Veterinary Medicine


Details of Signature and Priority Platform Areas

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Research Innovation Factors Applied/Industry Innovation Factors

VA Innovative Platform Areas Pubs Activity

Pubs Cluster

Major Grants

Major Centers

R&D Expend.

Patent Activity

Patent Network

VC Funding

SBIR Activity

Industry Size

Industry Spec.

Cyber & Cyber‐Physical Security

Applied Data Analytics, Image Analysis & Decision Support Tools

Electronics & Optics Materials/Components

Applied Sensing & Geospatial Systems

Wireless Communications Technologies & Equipment

• Highlights: Robust set of research centers and large, specialized industry base in downstream computing and analytics applications focused on cyber security and applied data analytics High research competency in electronics, optics, and sensing supported by moderate industry presence High industry innovation activity in wireless technologies with several key aligned centers of research excellence


Details of Signature and Priority Platform Areas

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Platform Area Key VA Research Innovation Highlights Key VA Translational Industry Innovation Highlights

Cyber & Cyber‐Physical Security

Presence of high profile cyber security centers and institutes across several universities

High supporting research publications activity in computer sciences

Presence in patenting of encryption and security protocols

High level of SBIR Phase 2 companies creating cyber security technologies for defense and biometrics applications

Large and specialized supporting industry base in computer engineering

Applied Data Analytics, Image Analysis & Decision Support Tools

Major centers across many aligned applications areas including modeling, visualization, image/video analysis, business analytics, and complex systems modeling

Several major grants to develop software applications using analytics capabilities

High levels of venture capital investment in software applications leveraging data analytics

Large clusters of patenting activity in analytics solutions for finance and business

Numerous SBIR Phase 2 awards in defense‐related decision support tools

Electronics & Optics Materials/ Components

Significant R&D spending in electrical engineering applications aligned towards this platform

Large number of research publications in electrical/electronic engineering

Major research centers across several universities focused on embedded electronic systems, photonics, electrochemical science, nanoelectronics, and bioelectric materials

Some venture capital investment in electronics and semiconductors

Presence of SBIR Phase 2 companies focused in high performance/low power electronics

Wireless Communications Technologies & Equipment

Large and specialized group of research publications in electrical engineering and telecommunications disciplines which support wireless innovation applications

Major centers focused around innovation in core wireless technologies of applied signal processing, IoT communications, and wireless security as well as applications areas in wireless health devices and command and control systems

Presence of venture capital investment in emerging wireless and satellite communications companies

Major patenting cluster around wireless network operations and infrastructure

Major Phase 2 SBIR company activity in antenna systems, real‐time communications, transmitter/receiver components, and efficient spectrum usage

Large state employment base in wireless telecommunications carriers


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Details of High Potential Platform Areas

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Pubs Cluster

Major Grants

Major Centers

R&D Expend.

Patent Activity

Patent Network

VC Funding

SBIR Activity

Industry Size

Industry Spec.

Biopharmaceuticals, Biochemistry, & Biological Analysis

IT, Networking, & Data Management

Environmental Sciences and Technology

• Highlights:Major cancer centers, academic medical centers, and biological research centers bolster biological analysis and therapeutics research capacity, but lack of supporting industry activity to translate to commercial innovation Large industry employment base utilizing downstream IT, networking, and data management technologies, but upstream research base strength is more driven by key applications areas than innovation in pureplay IT systems and infrastructure Large base of research activity supported by unique centers and field labs, but lack of supporting industry base in state to capture research output for creation of products and services


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Details of High Potential Platform Areas

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Platform Area Key VA Research Innovation HighlightsKey VA Translational Industry Innovation Highlights

Biopharmaceuticals, Biochemistry, & Biological Analysis

Leading cancer centers at VCU and UVA with numerous other supporting centers in biochemical and drug discovery areas funded by major grant activity

High supporting research publications activity in biological and applied medical sciences fields

Lack of large supporting industry base in pharmaceutical production and low venture capital investment in therapeutics

IT, Networking, & Data Management

Presence of numerous adjacent research strength areas in high performance computing and cyber, but lower level of focus on pureplay networking & IT research

Presence of numerous patents in network operations applications

Presence of large and specialized supporting computer services industry base with several data center operations in state, and adjacent industry markets in financial services

Transportation Systems & Technologies

Highly specialized research publications activity in transportation science and technology supported by sizeable mechanical engineering research activity which supports basic science in transportation systems

Major R&D spending in engineering disciplines aligned with transportation science

Several major centers specializing in transportation technologies including autonomous vehicles, vehicle system testing and validation analytics, , tire research, and transportation sustainability and logistics

Limited supporting industry innovation presence in vehicle systems manufacturing and limited presence of logistics/cargo industries

Environmental Sciences and Technology

Large cluster of specialized research publications activity in environmental science, ecology, geosciences, water resources, and other natural resource‐related areas

Significant levels of university R&D spending in supporting discipline areas such as biological sciences and oceanography

Numerous university centers in various focus areas including environmental hydraulics, environmental remote sensing systems, water resources, and marine science and oceanography

Major research and experiment stations and field laboratories

Specialized but very small industry innovation presence in patenting and environmental consulting industry sector employment


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Details of Middling & Niche Platform Areas

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Pubs Cluster

Major Grants

Major Centers

R&D Expend.

Patent Activity

Patent Network

VC Funding

SBIR Activity

Industry Size

Industry Spec.

Diagnostic Sensing & Imaging Medical Devices

Regenerative Medicine Devices

Engineered Materials for Aerospace, Naval, & Defense Applications

Energy, Power Systems, & Fuels

Animal Science and Veterinary Medicine

• Highlights: Several centers and areas of research excellence in medical devices, but little industry activity outside of federal government Unique and specialized industry base in engineered materials for naval applications, but industry ecosystem has gaps and research strengths are not overly specialized relative to national trends Several key research assets in power electronics and energy capture, but lack of supporting industry base to sustain applied use and heavy competition in industry from other states

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Details of Middling Platform AreasPlatform Area Key VA Research Innovation Highlights Key VA Translational Industry Innovation

Highlights

Diagnostic Sensing & Imaging Medical Devices

Variety of applied imaging university centers in specific disease areas

Presence of aligned R&D spending and academic medical centers to support research

Significant patenting activity in medical imaging and diagnostic surgical tools

Regenerative Medicine Devices

Presence of numerous centers in biomechanics and regenerative medicine across several universities

Lack of significant supporting medical device industry employment

Engineered Materials for Aerospace, Naval, & Defense Applications

Several key university centers for manufacturing and testing of aerospace and naval materials

Significant research publications activity in materials science, applied physics, and nanoscience

Large and highly specialized ship building industry which drives industry innovation

Variety of SBIR Phase 2 awards in advanced materials for defense and space environment applications

Energy, Power Systems & Fuels

Some significant research publications activity areas in geosciences/geochemistry, physical chemistry, energy/fuels, and nuclear energy

Presence of major university centers in renewable energy, grid and energy management research, and coastal/wind energy research

Small but highly specialized patenting areas in fossil fuels and wind turbines

Modest presence of energy‐related industry sectors in fossil fuel and nuclear power generation, electrical distribution, power equipment manufacturing, and engineering services support for power grid applications

Animal Science & Veterinary Medicine

Highly ranked school of veterinary medicine at Virginia Tech

Specialized and sizeable veterinary services industry sector, but lack of wider ag production employment base


Selection of Innovation Platforms for Further Assessment

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Signature Innovation Platforms Cyber & Cyber‐Physical Security

Priority Innovation Platforms Applied Data Analytics, Image Analysis, & Decision Support Tools Electronics & Optics Materials/Components Applied Sensing & Geospatial Systems Wireless Communications Technologies & Equipment

High Potential Innovation Platforms for Consideration Biopharmaceuticals, Biochemistry, & Biological Analysis IT, Networking, & Data Management Transportation Systems & Technologies Environmental Sciences and Technology

• Results from Line‐of‐Sight Analysis ‐‐ Select up to 6 to 8 areas for further analysis

Middling and Niche Innovation Platforms Diagnostic Sensing & Imaging Medical Devices Regenerative Medicine Devices Engineered Materials for Aerospace, Naval, & Defense Applications Energy, Power Systems, & Fuels Animal Science & Veterinary Medicine


High‐Level Innovation Ecosystem: Virginia Strengths and Gaps


Approach to Assessing Strengths and Gaps in Virginia’s Innovation Ecosystem• Focus on analyzing each link in the innovation ecosystem found in Virginia• High‐level assessment of Virginia’s position – focusing on areas of strength and gaps

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Virginia’s $11 billion research base has a distinct mix

Level of research activity in Virginia, high for federal labs and significantly lower for industry

Virginia lagging U.S. growth in research – university research growth and federal intramural labs positivesKey weakness is that industry research declining while growing robustly for U.S.


Closer Look at Industry Research

• Industry research funding from federal sources much higher in Virginia and own‐company funding much lower though share rising

• But research paid for by company not growing strongly in Virginia and growth in share due to decline in federal – so overall industry research funding falling behind U.S.

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Closer Look at University Research

• Sources of university research generally comparable to nation … Virginia higher in state/local government & institutional sources and lower non‐profit/philanthropic sources and other

• Higher growth of university research in Virginia due to healthy gains in business funding and state/local government & institutional sources

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Virginia lower in patent activity than the nation, but slightly higher in productivity and relative impact

Virginia keeping pace in growth of patent activity with nation


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Metric Virginia Three Largest Research Universities

Average for All U.S. Universities Reporting to AUTM

Disclosures Per $10 million of Research

4.17(2,475 total)

3.70

Patents Issued Per $10 million of Research

0.66(393)

0.89

Licenses Issued Per $10 million of Research

1.01(597)

1.02

Gross License Income Per $10 million of Research

$83,534($49.6 m)

$350,468

Average License Income $83,089 $344,535Start‐ups Per $10 million of Research

0.13 (79 total)

0.13

Metric 2010 2011 2012 2013 2014 2015Disclosures 388 396 430 439 437 385Patents Issued 67 73 61 54 73 65Licenses Issued 100 92 85 95 102 123Gross License Income $9.6 m $9.9 m $9.5 m $5.8 m $7.8 m $7.0 mStart‐up Formed 9 9 12 13 14 22

Virginia’s top 3 research universities have a mixed level of activities in technology transfer

Virginia’s top 3 research universities growing in licenses and start‐ups, but flat in disclosures and patents and declining in license income


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Virginia has high level of SBIR Awards

Similar to nation, Virginia recording declining levels of SBIR activity

Virginia faring slighter higher than nation in converting Phase I awards into Phase II awards


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Virginia has higher level of VC investment than U.S., but lower level of companies receiving VC investment

Correspondingly, share of VC investment in Virginia in early stages lower and higher for later stages

Virginia not keeping pace with the nation in VC funding from 2010‐2016


The Brookings Institution has identified a set of 50 Advanced Industries – high in R&D and STEM employment ‐‐ ranging from manufacturing industries to energy industries to high‐tech services from computer services to health applications.

Virginia 34% more specialized in its advanced industry base

But Virginia growing slower – 3% from 2010‐2016 vs. 14% for nation

Advanced industry growth lagging total private sector industry growth in Virginia

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Performance of Leading Advanced Industries in Virginia, 2010‐2016

Advanced Industry

Virginia Jobs 2016

Virginia Level of Industry Specialization, 2016(% Higher Concentration than Nation)

Virginia Job % Change, 2010‐16

U.S. Job % Change, 2010‐16

Railroad rolling stock manufacturing

1,019 54% 85% 41%

Medical and diagnostic laboratories

7,888 16% 13% 16%

Computer systems design and related services

158,122 212% 13% 37%

Management and technical consulting services

74,541 115% 10% 34%

Data processing, hosting and related services

11,286 47% 7% 24%

Other chemical product and preparation mfg.

3,810 83% 3% ‐4%

Electrical equipment manufacturing

5,874 65% 0% 3%

Ship and boat building

23,706 591% 0% 8%

Resin, rubber, and artificial fibers mfg.

4,841 103% ‐8% 5%

Other telecommunications

3,758 87% ‐10% ‐35%

Architectural and engineering services

53,558 49% ‐11% 10%

Scientific research and development services

23,006 32% ‐16% 10%

Satellite telecommunications

308 54% ‐35% ‐33%


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University R&DLevel: Growth:

Federal Lab R&DLevel: Growth:

Intramural Labs

FFRDCs

Industry R&DLevel: Growth:

Patent ActivityLevel: Growth:

SBIR Activity

Productivity: Quality:

Level: Growth:Conversion Phase I to II:

University Tech Transfer(UVA, VCU & VT)

Level: Growth:

Disclosures

Share:

Share:

Share:

Share:

Share:

Patents

Licenses

Start‐ups

Share:

Venture CapitalLevel: Growth: Share:

Investment

Companies Funded

Level:

Growth:

Share:

Other Measures of Entrepreneurial Development

Inc. 5000

Level:

Annual New Firm Birth Rate

Annual New Firm Job

Creation Rate

Key:Level = VA compared to nation, usually normalized by size of economic activityGrowth = Change from 2010 to most recent year

Share = Was VA growth rate above, on par or below national growth to nation, usually normalized by economic output


Next Steps


Moving into Phase II Charting the Course Forward

• University interviews underway, including environmental scan/assessment of technology transfer

• Industry interviews to be guided by today’s discussion – need to generate contacts of companies driving innovation. Will be reaching out to technology councilsand universities for contacts Open to further guidance

• Federal labs – will be conducting selected interviews of major facilities based on today’s discussion

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Project Timeline

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Phase Component August September October November December January‐March

Phase I: Establishing the Baseline

Environmental Scan (Part I)

Gap Analysis (Part I)

Initial Assessment of Assets

Summary Report Ia –Environmental Scan

Summary Report Ib – Shallow Dive Gap Analysis

Phase II: Charting the Course Forward

Environmental Scan (Part II)

Gap Analysis (Part II)

Targeted Assessment of Assets

Summary Report II

Phase III: Developing Recommendations

Development of Recommendations

Report of Recommendations

Full Report of Project

Phase IV: Presenting Recommendations

Assist with Communications and Disseminations


Thank you … Questions?

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Mitch HorowitzPrincipal & Managing Director TEConomy Partners, LLC. 240.462.5456 [email protected]

Joe SimkinsSenior Economist TEConomy Partners, LLC. 614.420.1607 [email protected]


Details on Benchmarks


Georgia Research Alliance 25+ Year History of Creating A Sustained Mechanism to Advance Research, Commercialization and Start‐ups

GRA Ventures• Started in 2002 to develop companies from Georgia university research

• Multi‐phased approach: Identify promising technology, conduct due diligence, support proof‐of‐concept, fund start‐up

• Advanced to market 300 distinct university technologies with grants totaling $22 million

• Provided $10 million in low‐interest loans to 42 of the most promising companies

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• Industry‐led non‐profit that directs state investment in new research capacity

• 60 GRA Eminent Scholars recruited• GRA maintains ability to influence recruitment of open Eminent Scholar positions

• Guided by strategic technology roadmaps• Since its formation in 1990, GRA has leveraged $600 million of state funding into: Over $4 billion of direct federal and private investment in Georgia

A portfolio of inventions and technologies 170 active companies

• Unique public‐private collaboration started in 2009 to create a privately managed, The GRA Venture Fund, LLC

• The state’s commitment includes both capital investment and income tax credits for private investors.

• The Fund is a mix of private (83%) and state (17%) investment that raised over $45 million.

• Targets companies that have participated in GRA Ventures commercialization program


Ohio Third Frontier Focus on Accelerating the Creation and Growth of Investible and Scalable Technology and Tech‐Enabled Companies

• Notable Programs: Wright Centers of Innovation (past program) ‐‐ Targeting specific technology platforms with industry‐university centers Example of Global Cardiovascular Innovation Center advancing product development and company incubation ‐‐ $60 m of OTF funding has yielded after 10 years: 1,000 new jobs; 27 start‐ups with 8 incubator graduates; 17 companies attracted to Ohio; $1 billion of follow‐on funding and exits; 11 new products on the market, 14 in clinical trials, and another 12 in development.

Technology Validation & Start‐up Fund – Advancing university technologies with initial Phase 1 proof‐of‐concept funding up to $50k with 1:1 cash cost share and Phase 2 support to provide initial capitalization of $100k ($150k if medtech) for start‐up licensee of university technology 76 Phase I awards 14 licensed to start‐up companies and 3 to non‐startup company 43 Phase 2 awards 25 received equity investments of $24 m; 7 with products in market; 24 in clinical trials

Entrepreneurial Services Provider and Seed/Pre‐Seed Funds – regionally based network to assist entrepreneurs identify technologies, accelerate their venture development and access capital, combined with regionally‐based professionally managed capital. 1,600+ companies served by ESPs with 35% going on to receive pre‐seed investment Cumulative Impact in 2016 of $175m (1/2 OTF and 1/2 private match) invested in Seed Companies: 330 companies; 3,074 new jobs; $1.6 b of follow‐on equity; $1.6 b in product revenue

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Oregon Signature Research Centers• Industry‐led non‐profit organizations targeting a specific technology market opportunity • Receive state funding of approximately $2‐3 million annually • Focus on two basic activities:

Formal and informal business mentoring and entrepreneurial services, such as incubators, entrepreneurs‐in‐residence, business plan/pitch development and networking with investors

Targeted assistance to advance industry‐university research activities, including access to shared use facilities, promoting matches to pursue federal funding and proof‐of‐concept funding to de‐risk technologies

• Centers formed in: Nanoscience and microelectronics (ONAMI); Life sciences with high throughput drug discovery and incubator/biomentoring program; and Clean‐tech for built environment and sustainability with focus on networking and strengthening innovation ecosystem

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• Key Criteria: High Growth in job creation or retention High Wages Competitive Advantage in the global marketplace

Critical Mass of state assets to advance Leverage Potential from private investment and federal research dollars

Catalytic Role for state to move this initiative forward

• Example of Impact: Oregon Nanoscience & Microelectronics Institute (ONAMI)

o 45 business start‐ups receiving $7.9 m in commercialization gap funding, generating $165 m in follow‐on funding from private investment and SBIR funding

o Annual nanoscience and microtechnology research grew from $9m in FY 2004 to consistently above $30 m annually, with total funding of $361 m through 2015. Industry support of $36 m in equipment, facilities and services.


Emerging Best Practices: Indiana Building New Research Anchors with Industry and Leveraging the Rise of an Innovation District

• Indiana Biosciences Research Institute

• New public‐private partnership launched in 2013

• $50M initial investment: $25M state investment matched by industry and foundations

• Focus on multidisciplinary approach to metabolic disorders ‐‐ attracting 8‐12 leading research teams to collaborate and work alongside industry R&D teams

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Innovating Tomorrow’s Economic LandscapeTEConomy Partners is a global leader in research, analysis and strategy forinnovation‐based economic development. Today we’re helping nations,states, regions, universities, and industries blueprint their future and

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research asset assessment study for commonwealth of virginia · 09.10.2017 · share of total...

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